Financials: Mar. Bonds are currently 18 lower at 122'05. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115'00 put. I will cover the short Mar. 115'00 put at 19 points (currently at 38).

Grains: Yesterday Beans were 7 higher, Corn 4 higher and Wheat 18 higher. Over night Beans were 9 higher, Corn fractionally higher and Wheat fractionally higher. We continue to hold the combination of short out of the money puts and calls in Mar. Beans.

Cattle: Yesterday Dec. Cattle closed unchanged at 83.20. The long Dec. /short Apr. spread is currently trading at 485 premium the Apr. We continue to hold this spread position. We also remain long Dec. Cattle with a protective sell stop at the 80.80 level. Please note that Monday, Dec. 7th is first notice day for Dec. Cattle. I recommend rolling any Dec. positions into the Feb. contract this coming Friday to avoid being in a delivery situation.

Silver: Mar. Silver is currently 32 cents higher at 18.82. We remain long out of the money call spreads in the July contract. If the futures trade above the 19.00 level, roll the long leg of any spreads into a higher strike price (make sure the strike price is below that of your short leg of any spreads).

S&P's: Dec. S&P's are currently 12.00 higher at 1107. I remain on the sidelines. However I do recommend considering going long out of the money puts as portfolio insurance.

Currencies: As of this writing the Dec. Euro is 85 higher 1.5076, the Swiss 59 higher at .9998, the Yen 58 lower at 1.1527 and the Pounds 160 higher at 1.6582. Against conventional wisdom, I am long puts in the currencies. The Dec. Dollar Index is currently 42 lower at 74.52. Near term support remains in the 74.40 area for the Dec. Dollar Index. Dec. currency options expire this Friday.

Regards,

                Marc